SIGNIFICANT TRANSACTIONS	12 Months Ended
Dec. 31, 2021
Significant Transactions
SIGNIFICANT TRANSACTIONS	NOTE 2 – SIGNIFICANT TRANSACTIONS Glosser Arbitration Settlement In August 2019, the Company won an arbitration award (ratified by the court) from Mr. Glosser in the amount of $357,914, together with arbitrator’s compensation of $4,957, for a total award of $362,871; and Mr. Glosser’s counterclaim was found to be without merit. The Company and Mr. Glosser entered into a Settlement Agreement and Mutual Release on February 24, 2020, pursuant to which this matter was fully settled, resolving all claims, and Mr. Glosser paid the Company $300,000. Apeiron Systems Working Capital Settlement On December 31, 2018, the Company and the shareholders of Apeiron Systems entered into an Agreement and Plan of Merger. Section 2.2 Estimated Net Working Capital and Section 2.3 Final Settlement of that agreement provided for a method to calculate and reconcile any surplus or deficit in net working capital amounts as of December 31, 2018. On November 22, 2019, the Company, Apeiron Systems and the Apeiron Systems’ shareholders reached an agreement on the final surplus net working capital amount of $310,130 owed by Apeiron Systems to the Apeiron Systems shareholders under the Apeiron Systems Merger Agreement. The net working capital amount was deemed to be payable by Apeiron Systems to the Apeiron Systems shareholders pro rata: 90% or $279,117 to Joshua Ploude and 10% or $31,013 to Vyacheslav Yanson. On February 14, 2020, the Company, on behalf of Apeiron Systems, made a partial payment of $5,000 towards the surplus net working capital balance of $31,013 Apeiron Systems owed to one (1) of its officers, Vyacheslav Yanson. On March 5, 2020, the Company, on behalf of Apeiron Systems, paid Mr. Yanson $26,013, representing the final payment of the surplus net working capital balance owed to Mr. Yanson. On March 8, 2020, the Company, on behalf of Apeiron Systems, paid another of its officers, Joshua Ploude, $225,000 towards the surplus net working capital balance owned to Mr. Ploude. The remaining surplus net working capital balance of $54,117 owed to Mr. Ploude was paid to Mr. Ploude during 2020. With the final payment of $54,117 paid to Mr. Ploude, the Company has fully satisfied its surplus net working capital obligation under the Apeiron Systems Merger Agreement. Euler Hermes/Sky Phone Settlement Between March and July of 2019, IM Telecom purchased wireless handsets from Sky Phone, LLC in the amount of $192,293. Subsequently, a dispute arose between the parties regarding the amount of the debt, a lack of sufficient transaction documentation and problems with some of the handsets. On or about December 2019, the debt was transferred to Euler Hermes North America Insurance Company. On April 22, 2020, the parties entered into an agreement to settle the matter whereby IM Telecom agreed to pay $80,000 in monthly payments of $4,000 over twenty (20) months. The first payment was made on May 20, 2020. As of August 2021, the settlement had been paid in full. SBA Paycheck Protection Program On April 14, 2020 the operating companies of the Company made loan applications to participate in the Small Business Administration’s (SBA”) Paycheck Protection Program (“PPP”) created as a result of the COVID-19 pandemic. On April 15, 2020, the PPP loan applications of Apeiron Systems, IM Telecom and KonaTel Nevada were approved and loan proceeds in the amounts of $101,800, $20,900 and $186,300, respectively, were received. The Company followed all prescribed PPP loan forgiveness guidelines provided by our local bank and the SBA. As of December 31, 2021, all PPP loans have been forgiven by the SBA. EIDL Loan In 2020, the Company was granted a $150,000 Economic Injury Disaster Loan (“EIDL”) from the SBA. The term of the loan is thirty (30) years, at an interest rate of 3.75% on advanced funds. Installment payments were to begin twelve (12) months following the loan date. The SBA has subsequently granted automatic deferments of payments through March of 2022.

SIGNIFICANT TRANSACTIONS

12 Months Ended

Dec. 31, 2021

NOTE 2 – SIGNIFICANT TRANSACTIONS

Glosser Arbitration Settlement

In August 2019, the Company won an arbitration award (ratified by the court) from Mr. Glosser in the amount of $357,914, together with arbitrator’s compensation of $4,957, for a total award of $362,871; and Mr. Glosser’s counterclaim was found to be without merit. The Company and Mr. Glosser entered into a Settlement Agreement and Mutual Release on February 24, 2020, pursuant to which this matter was fully settled, resolving all claims, and Mr. Glosser paid the Company $300,000.

Apeiron Systems Working Capital Settlement

On December 31, 2018, the Company and the shareholders of Apeiron Systems entered into an Agreement and Plan of Merger. Section 2.2 Estimated Net Working Capital and Section 2.3 Final Settlement of that agreement provided for a method to calculate and reconcile any surplus or deficit in net working capital amounts as of December 31, 2018. On November 22, 2019, the Company, Apeiron Systems and the Apeiron Systems’ shareholders reached an agreement on the final surplus net working capital amount of $310,130 owed by Apeiron Systems to the Apeiron Systems shareholders under the Apeiron Systems Merger Agreement. The net working capital amount was deemed to be payable by Apeiron Systems to the Apeiron Systems shareholders pro rata: 90% or $279,117 to Joshua Ploude and 10% or $31,013 to Vyacheslav Yanson.

On February 14, 2020, the Company, on behalf of Apeiron Systems, made a partial payment of $5,000 towards the surplus net working capital balance of $31,013 Apeiron Systems owed to one (1) of its officers, Vyacheslav Yanson. On March 5, 2020, the Company, on behalf of Apeiron Systems, paid Mr. Yanson $26,013, representing the final payment of the surplus net working capital balance owed to Mr. Yanson. On March 8, 2020, the Company, on behalf of Apeiron Systems, paid another of its officers, Joshua Ploude, $225,000 towards the surplus net working capital balance owned to Mr. Ploude. The remaining surplus net working capital balance of $54,117 owed to Mr. Ploude was paid to Mr. Ploude during 2020. With the final payment of $54,117 paid to Mr. Ploude, the Company has fully satisfied its surplus net working capital obligation under the Apeiron Systems Merger Agreement.

Euler Hermes/Sky Phone Settlement

Between March and July of 2019, IM Telecom purchased wireless handsets from Sky Phone, LLC in the amount of $192,293. Subsequently, a dispute arose between the parties regarding the amount of the debt, a lack of sufficient transaction documentation and problems with some of the handsets. On or about December 2019, the debt was transferred to Euler Hermes North America Insurance Company. On April 22, 2020, the parties entered into an agreement to settle the matter whereby IM Telecom agreed to pay $80,000 in monthly payments of $4,000 over twenty (20) months. The first payment was made on May 20, 2020. As of August 2021, the settlement had been paid in full.

SBA Paycheck Protection Program

On April 14, 2020 the operating companies of the Company made loan applications to participate in the Small Business Administration’s (SBA”) Paycheck Protection Program (“PPP”) created as a result of the COVID-19 pandemic. On April 15, 2020, the PPP loan applications of Apeiron Systems, IM Telecom and KonaTel Nevada were approved and loan proceeds in the amounts of $101,800, $20,900 and $186,300, respectively, were received. The Company followed all prescribed PPP loan forgiveness guidelines provided by our local bank and the SBA. As of December 31, 2021, all PPP loans have been forgiven by the SBA.

EIDL Loan

In 2020, the Company was granted a $150,000 Economic Injury Disaster Loan (“EIDL”) from the SBA. The term of the loan is thirty (30) years, at an interest rate of 3.75% on advanced funds. Installment payments were to begin twelve (12) months following the loan date. The SBA has subsequently granted automatic deferments of payments through March of 2022.